Restaurants and eateries in Bengaluru, many of whom used to be open past midnight, are closing one hour prior to midnight today in order to avoid glitches arising out of the Goods and Services Tax (GST) implementation.
The country is transcending into GST regime at 12 'o clock midnight on Friday. The restaurant owners will be issuing the GST invoices with the commencement of business on Saturday.
“We have to file Friday’s returns under the existing service tax norms, but post midnight if we keep open we will have to file under GST,” said a manager at one of the AC restaurants on MG Road.
Most of the outlets don’t have their computerised templates of the GST invoices ready and would be handing over manual invoices in case their GST invoice template is not ready.
Karnataka currently levies only a 4% VAT on non-AC restaurants and no service tax. Under GST regime, all non-AC restaurants will be taxed at 12% after all the local levies are subsumed under one tax.
On AC restaurants, the state levies a total of 10%, including service tax at 6%. Post GST, a cumulative 18% will be levied on AC restaurants which also serve liquor.
Published 30 June 2017, 13:24 IST